cloudedjudgement.substack.com · 2021-09-21 · 1717d

Clouded Judgement: Q2 2021 Public Cloud Software Earnings Analysis

Analysis of Q2 2021 earnings for 66 public cloud software companies, examining revenue beats, guidance, growth rates, net revenue retention, CAC payback, and valuation multiples. Demonstrates that 77% of companies accelerated YoY revenue growth, with median NRR of 127% and positive FCF margins of 6%, while public SaaS valuations remain 50% above COVID highs at 16x NTM revenue multiples.

20 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

Consensus Revenue Beat

4.5percent

median

Public cloud software, Q2 2021

Free Cash Flow Margin

6percent

median

Public SaaS companies, Q2 2021

Free Cash Flow Margin

31percent

top-decile

Public SaaS companies, Q2 2021

Gross Margin Adjusted CAC Payback

19months

median

Public SaaS companies, Q2 2021

Gross Margin Adjusted CAC Payback

17months

top-quartile

Public SaaS companies, Q2 2021

Gross Margin Adjusted CAC Payback

9months

top-decile

Public SaaS companies, Q2 2021

Gross Margin Adjusted CAC Payback (Best-in-Class)

12months

maximum

Private SaaS benchmark target

Gross Margin Adjusted CAC Payback (Good)

24months

maximum

Private SaaS benchmark target

High Growth Software Revenue Multiple (NTM)

32x

median

Public SaaS with >30% projected NTM growth, Sep 2021

Low Growth Software Revenue Multiple (NTM)

12x

median

Public SaaS with <15% projected NTM growth, Sep 2021

Mid Growth Software Revenue Multiple (NTM)

15x

median

Public SaaS with 15-30% projected NTM growth, Sep 2021

Net Revenue Retention

127percent

median

Public SaaS companies, Q2 2021

Net Revenue Retention

130percent

top-decile

Public SaaS companies, Q2 2021

Net Revenue Retention (Best-in-Class)

130percent

minimum

SaaS benchmark target

Net Revenue Retention (Good)

115percent

minimum

SaaS benchmark target range (115-130%)

Net Revenue Retention (SMB SaaS Best-in-Class)

120percent

minimum

SaaS companies with SMB customer base

Revenue Multiple (NTM)

16x

median

Public cloud software companies, Q2 2021

YoY Revenue Growth

34percent

median

Public cloud software companies, Q2 2021

YoY Revenue Growth

50percent

top-quartile

Public cloud software companies, Q2 2021

YoY Revenue Growth

67percent

top-decile

Public cloud software companies, Q2 2021